Article 30. Banking activities of the Law on Banks and Banking Activities in the Republic of Kazakhstan

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1. Banking activity is the performance by banks of banking and other operations established by this Article.

2. Banking operations include:

1) accepting deposits, opening and maintaining bank accounts of legal entities;

2) accepting deposits, opening and maintaining bank accounts of individuals;

3) opening and maintaining correspondent accounts of banks and organizations engaged in certain types of banking operations;

4) opening and maintaining by banks of metal accounts of individuals and legal entities, which reflect the physical quantity of refined precious metals and coins made of precious metals belonging to this person;

5) cash operations: receiving and issuing cash by banks and the National Postal Operator, including their exchange, exchange, recalculation, sorting, packaging and storage;

6) transfer operations: execution of orders from individuals and legal entities for payments and money transfers. A transfer transaction license is issued to banks and legal entities specified in paragraph 6-1 of this article.;

7) accounting operations: accounting (discount) of promissory notes and other debt obligations of individuals and legal entities;

8) bank loan operations: provision by a bank, a mortgage organization, an organization other than a bank engaged in brokerage and (or) dealer activities on the securities market, or organizations engaged in lending to agro-industrial entities, one hundred percent of whose voting shares are directly or indirectly owned by the national management holding, loans in cash on a fee-based basis, urgency and returnability;

9) foreign currency exchange operations, including foreign currency cash exchange operations;

10) (deleted - dated January 12, 2007 N 222); 11) (deleted - dated January 12, 2007 N 222);

12) collection of banknotes, coins and valuables;

13) acceptance of payment documents for collection (except for promissory notes);

14) opening (issuing) and confirmation of a letter of credit and fulfillment of obligations under it;

15) issuance by banks of bank guarantees providing for execution in monetary form;

16) issuance by banks of bank guarantees and other obligations for third parties, providing for execution in monetary form.

2-1. The banking activity of a branch of a non-resident bank of the Republic of Kazakhstan is the performance by a branch of a non-resident bank of the Republic of Kazakhstan of banking and other operations specified in paragraph 2 and sub-paragraphs 1), 2), 3), 4), 6), 7), 8) and 9) paragraph 11 of this article.

A branch of a non–resident bank of the Republic of Kazakhstan, if licensed by the authorized body, is also entitled to carry out in the territory of the Republic of Kazakhstan the types of professional activities on the securities market specified in paragraph 12 of this article.

3. Banking operations do not include the provision of micro-loans by organizations engaged in microfinance activities, in accordance with the legislation of the Republic of Kazakhstan on microfinance activities.

4. Excluded by the Law of the Republic of Kazakhstan dated 03.07.2019 No. 262-VI (effective from 01.01.2020).

5. A license for banks to conduct banking and other operations provided for in this article shall be issued by the authorized body.

Banking operations provided for in sub-paragraphs 1), 3), 5), 9) and 12) of paragraph 2 of this Article, are carried out by the National Postal Operator without a license from an authorized body.

6. One or more types of banking operations provided for in paragraph 2 of this Article may be carried out by an organization engaged in certain types of banking operations, subject to a license from the authorized body or the National Bank of the Republic of Kazakhstan, with the exception of the following cases:

1) when the law of the Republic of Kazakhstan regulating the activities of such an organization provides for the possibility of carrying out these operations without a license;

2) when the banking operations provided for in subparagraph 8) of paragraph 2 of this article are carried out by subsidiaries of banks acquiring doubtful and uncollectible assets of the parent bank, as well as by an organization specializing in improving the quality of credit portfolios of second-tier banks, without a license.

A license for organizations engaged in certain types of banking operations to conduct banking operations provided for in paragraph 2 of this Article shall be issued by the authorized body or the National Bank of the Republic of Kazakhstan, except for the cases provided for in paragraph 7 of this Article.

A license for a banking operation provided for in subparagraph 9) of paragraph 2 of this article is issued to organizations engaged in certain types of banking operations.:

regarding exchange operations with foreign currency in cash – to legal entities operating exclusively through exchange offices;

regarding exchange operations with non–cash foreign currency - to other organizations.

6-1. The banking operation provided for in subparagraph 6) of paragraph 2 of this article is carried out by a stock exchange, a clearing organization performing the functions of a central counterparty, a central depository if the specified legal entities have a license from the authorized body to conduct banking operations provided for in subparagraphs 1) and (or) 3) of paragraph 2 of this article, as well as an operational the center of the interbank money transfer system.

Other legal entities shall conduct banking operations provided for in subparagraphs 1) and 6) of paragraph 2 of this Article, within the limits of their powers established by the laws of the Republic of Kazakhstan.

Organizations other than banks engaged in brokerage and (or) dealer activities in the securities market are entitled to carry out certain types of banking operations on the basis of relevant licenses of the authorized body in accordance with the procedure established by the legislation of the Republic of Kazakhstan on the securities market.

7. The banking operation provided for in subparagraph 6) of paragraph 2 of this Article is carried out without a license from an authorized body by government agencies, the National Postal Operator, and the Development Bank of Kazakhstan in accordance with the laws of the Republic of Kazakhstan governing their activities.

The banking operation provided for in subparagraph 6) of paragraph 2 of this article is carried out without a license from an authorized body by an organization that registers transactions with securities on the territory of the Astana International Financial Center in order to settle transactions with financial instruments concluded on the stock exchange of the Astana International Financial Center.

7-1. Legal entities whose exclusive activity is the collection of banknotes, coins and valuables on the basis of a license from the National Bank of the Republic of Kazakhstan are prohibited from engaging in other types of activities (operations), except for activities related to the recalculation, sorting, packaging, storage of banknotes, coins and valuables, as well as their issuance to banks and their clients on behalf of banks.

8. The procedure for licensing banking operations, as well as other operations carried out by banks provided for in this article, is established by a regulatory legal act of the authorized body.

9. The procedure for licensing banking operations carried out by organizations engaged in certain types of banking operations provided for in this Article shall be established by regulatory legal acts of the authorized body and the National Bank of the Republic of Kazakhstan within their competence.

10. Regulatory legal acts of the authorized body and the National Bank of the Republic of Kazakhstan may establish additional requirements for banks and organizations engaged in certain types of banking operations related to obtaining licenses for certain types of activities.

11. Banks, in addition to the banking operations provided for in paragraph 2 of this Article, may, subject to a license from the authorized body, carry out the following operations:

1) purchase, acceptance as collateral, accounting, storage and sale of refined precious metals (gold, silver, platinum, platinum group metals) in bullion, coins made of precious metals;

2) purchase, acceptance as collateral, accounting, storage and sale of jewelry containing precious metals and precious stones;

3) promissory note transactions: acceptance of promissory notes for collection, provision of services for payment of promissory notes by the payer, as well as payment of domiciled promissory notes, acceptance of promissory notes by way of mediation;

4) implementation of leasing activities;

5) issue of own securities (excluding shares);

6) factoring operations: acquisition of the rights to demand payment from the buyer of goods (works, services) with acceptance of the risk of non-payment;

7) forfeiting operations (forfeiting): payment of the debt obligation of the buyer of goods (works, services) by purchasing a promissory note without turnover for the seller;

8) trust operations: management of money, claims on bank loans and refined precious metals in the interests and on behalf of the principal;

9) safe deposit operations: services for the storage of securities issued in documentary form, documents and valuables of clients, including the rental of safe boxes, cabinets and premises.

12. Banks are entitled to carry out the following types of professional activities in the securities market:

1) brokerage - with government securities of the Republic of Kazakhstan and countries having the minimum required rating of one of the rating agencies or without it by decision of the authorized body, derivative securities and derivative financial instruments, the list and procedure for acquiring the underlying assets of which are determined by the authorized body;

2) dealer's - with government securities of the Republic of Kazakhstan and countries having the minimum required rating of one of the rating agencies or without it by decision of the authorized body, as well as derivative securities and derivative financial instruments, the list and procedure for acquiring the underlying assets of which are determined by the authorized body, other securities in the cases established by Article 8 of this The Law;

3) custodial;

4) transfer agency.

A license for banks to carry out one or more compatible of the above-mentioned types of professional activity in the securities market is issued by an authorized body.

The list of rating agencies and the minimum required rating provided for in subparagraphs 1) and 2) of this paragraph shall be determined by the authorized body.

The bank, which meets the criteria established by the regulatory legal act of the authorized body, carries out brokerage activities on the basis of a license in accordance with the legislation of the Republic of Kazakhstan on the securities market, without regard to the provisions of subparagraph 1) of part one of this paragraph.

12-1. Banks and organizations engaged in certain types of banking operations have the right to collect copies of identity documents of non-residents for the purposes provided for by this Law.

13. Banking operations provided for in subparagraph 2) paragraph 2 of this article may be conducted only by banks that are participants in the mandatory deposit guarantee system, as well as the National Postal Operator in accordance with the legislative act of the Republic of Kazakhstan regulating its activities, on the basis of a license issued by the authorized body.

In addition to the condition provided for in part one of this paragraph, the condition for branches of non–resident banks of the Republic of Kazakhstan to conduct banking operations provided for in subparagraph 2) paragraph 2 of this article is the acceptance of a deposit from an individual of at least one hundred and twenty thousand US dollars.

Banking operations provided for in subparagraph 2) paragraph 2 of this article may be carried out by the central securities depository, organizations other than banks engaged in brokerage and (or) dealer activities in the securities market, taking into account the specifics defined by the legislation of the Republic of Kazakhstan on the securities market.

13-1. For banks providing loans to private business entities, participation in the system of guaranteeing the obligations of private business entities is mandatory.

14. The rules of this article apply to the activities of Islamic banks to the extent that they do not contradict the requirements for the activities of Islamic banks specified in Article 52-1 of this Law.

The Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444.

President

Republic of Kazakhstan

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